Short clip from a Tim Bell YouTube video (Mar 20, 2024) in which Tim Bell explains why he targets tax-delinquent properties before they go to auction: he seeks out owners, offers to pay back taxes in exchange for a purchase that preserves some homeowner equity, and frames the result as a win for the county, the owner, and himself.
The next one. Delinquent property taxes. I love tax delinquent properties. Why? When people are behind on their taxes, they have a problem. And if they don't solve that problem, in many cases, they may lose their house to a tax lien foreclosure or to a tax deed foreclosure. Okay. Now, I like to find tax lien properties before they go to the auction. Okay? You may be familiar with tax lien auctions or tax deed auctions, but the nice thing about tax lien or tax deed auctions is the auctions are often advertised well in advance of the auction date, which gives you an opportunity to find those properties and to go out and knock on the door. That's what you want to do. You want to find those tax delinquent properties, go out, knock on the door, talk with the people. Okay, here's the thing. If it goes to a tax lien sale and a foreclosure, or a tax deed sale and a foreclosure, how much of the equity are the sellers going to get? The answer is none. They're not going to get any of their equity. Well, I have a lot better proposition for them than that. I'm going to give them a big chunk of their equity. I'm not going to give them all of it, but I'm going to give them a big chunk of their equity. I'm going to pay off the back taxes and everybody's going to win. The county wins because they get their taxes paid off. The owner wins because they get a big chunk of their equity and get out from under that tax debt. And I win because I buy a property at an advantageous price. Again, it's a win, win, win circumstance. That's why I love tax delinquents.
